China: Hebei tomato market slump set to continue
On 19 July, tomatoes, grown in greenhouses in Hebei, were sold for around 0.80 yuan/500g. This is a…On 19 July, tomatoes, grown in greenhouses in Hebei, were sold for around 0.80 yuan/500g. This is a drop of 0.30 yuan/500g or 27.27% since the beginning of June, when they first entered the market. Compared to the same period last year, the price is 0.10 yuan/500g or 14.29% higher. It has been half a month since the tomatoes first entered the market, and the price is showing a downward trend.
There are three main reasons why the price is so low. Firstly, the production volume is low this season and the price is higher than other vegetables, causing the sales volume to be lower. Secondly, the temperature has been rather high this year, which makes the taste sourer. The prices for fruits like watermelons and peaches are rather low now, pressuring the sales volume of tomatoes. Lastly, large quantities of Hebei tomatoes have entered the market, but the quality is only just acceptable, so the customers' willingness to buy them is rather low. This also hinders a rise in price.
SCI99.com believes that the Chinese tomato supply is sufficient, but the demand is not enough. In a while, tomatoes from Yinchuan, that are grown in the open air, will also enter the market in large quantities, so there is still room for the Hebei tomato price to drop even further.